11 John R Schermerhorn, Jr Daniel G Bachrach Introduction to Management 13th edition Chapter 11 Fundamentals of Organizing Planning Ahead — Key Takeaways  Describe organizing as a management function and the difference between formal and informal organization structures  Identify the traditional organizational structures, and the strengths and weaknesses of each  Identify newer horizontal organizational structures, and the strengths and weaknesses of each  Explain how organizational designs are changing in the modern workplace Copyright ©2015 John Wiley & Sons, Inc Chapter 11 Outline Organizing as a Management Function a) b) c) What is organization structure? Formal structures Informal structures Traditional Organization Structures a) b) c) Functional structures Divisional structures Matrix structures Copyright ©2015 John Wiley & Sons, Inc Chapter 11 Outline Horizontal Organization Structures a) b) c) Team structures Network structures Boundaryless structures Organizational Designs a) b) c) Contingency in organizational design Mechanistic and organic organization designs Trends in organizational designs Copyright ©2015 John Wiley & Sons, Inc Organizing as a Management Function  Organizing  Organizing   as a management function Arranges people and resources to work together to accomplish a goal Organization structure  The system of tasks, reporting relationships, and communication linkages Copyright ©2015 John Wiley & Sons, Inc Figure 11.1 Organizing viewed in relationship with the other management functions Copyright ©2015 John Wiley & Sons, Inc Organizing as a Management Function  An organization chart is a diagram describing reporting relationships and the formal arrangement of work positions within an organization It includes: The division of work Supervisory relationships Communication channels Major subunits Levels of management Copyright ©2015 John Wiley & Sons, Inc Organizing as a Management Function  Informal   structures … The set of unofficial relationships between organization members Social network analysis  Identifies informal structures and social relationships in the organization Copyright ©2015 John Wiley & Sons, Inc Organizing as a Management Function  Informal  structures and social networks Potential advantages of informal structures: Allow people to make contacts with others who can help them get things done  Stimulate learning as people work and interact together  Sources of emotional support and friendship that satisfy members’ social needs  Copyright ©2015 John Wiley & Sons, Inc Organizing as a Management Function Copyright ©2015 John Wiley & Sons, Inc Figure 11.7 The boundaryless organization eliminates internal and external barriers Copyright ©2015 John Wiley & Sons, Inc Organizational Designs Organizational design   Process of creating structures that accomplish mission and objectives A problem-solving activity that should be approached from a contingency perspective Copyright ©2015 John Wiley & Sons, Inc Organizational Designs Bureaucracy   A form of organization based on logic, order, and the legitimate use of formal authority Bureaucratic designs feature … Clear-cut division of labor  Strict hierarchy of authority  Formal rules and procedures  Promotion based on competency  Copyright ©2015 John Wiley & Sons, Inc Organizational Designs Contingency perspective on bureaucracy asks the questions:   When is bureaucracy a good choice for an organization? When it isn’t, what alternatives are available? Copyright ©2015 John Wiley & Sons, Inc Organizational Designs Environment determines the most appropriate design   Mechanistic designs work in a stable environment Organic designs work in a rapidly changing and uncertain environment  Adaptive organizations operate with a minimum of bureaucratic feature and encourage worker empowerment and teamwork Copyright ©2015 John Wiley & Sons, Inc Organizational Designs Copyright ©2015 John Wiley & Sons, Inc Figure 11.8 A continuum of organizational design alternatives: from bureaucratic to adaptive organizations Copyright ©2015 John Wiley & Sons, Inc Organizational Designs Contemporary organizing trends include:  Fewer levels of management Shorter chains of command  Less unity of command      Wider spans of control More delegation and empowerment Decentralization with centralization Reduced use of staff Copyright ©2015 John Wiley & Sons, Inc Trends in Organizational Designs Copyright ©2015 John Wiley & Sons, Inc Trends in Organizational Designs Copyright ©2015 John Wiley & Sons, Inc Trends in Organizational Designs  More    delegation and empowerment Delegation is the process of distributing and entrusting work to other persons The manager assigns responsibility, grants authority to act, and creates accountability Authority should be commensurate with responsibility Copyright ©2015 John Wiley & Sons, Inc Organizational Designs Three Steps in Delegation: Copyright ©2015 John Wiley & Sons, Inc Organizational Designs Decentralization with centralization Copyright ©2015 John Wiley & Sons, Inc Organizational Designs Copyright ©2015 John Wiley & Sons, Inc Organizational Designs Copyright ©2015 John Wiley & Sons, Inc ... Wiley & Sons, Inc Organizing as a Management Function  Organizing  Organizing   as a management function Arranges people and resources to work together to accomplish a goal Organization structure... designs are changing in the modern workplace Copyright ©2015 John Wiley & Sons, Inc Chapter 11 Outline Organizing as a Management Function a) b) c) What is organization structure? Formal structures... John Wiley & Sons, Inc Figure 11. 1 Organizing viewed in relationship with the other management functions Copyright ©2015 John Wiley & Sons, Inc Organizing as a Management Function  An organization